Semiconductor distribution ends highest fourth quarter ever with double-digit growth. Central, East and South Europe lead the way. Discrete, Power, Opto, Memory and High-End MCUs stand out.
The European semiconductor industry ended 2017 on a positive note. According to DMASS Ltd., semiconductor sales as reported by the members in Q4/2017 ended with an increase over Q4/2016 of 11.6% at 2.01 Billion Euro, the highest-ever winter quarter since DMASS has existed.
The full year 2017 ended 14.6% higher at 8.5 Billion Euro, also an all-time record. (Note to editors: DMASS claims a coverage of 80 to 85% of European Semiconductor DTAM.)
Georg Steinberger, chairman of DMASS: “A combination of several factors led to this all-time-record year for DMASS members: high demand in all industries, long lead-times and price increases, new and exciting technologies, deeper penetration of existing applications with more semi technology. We see, however, a slight slowdown in the growth rate and a high order backlog, which in combination could mean a certain risk for 2018. The first quarter 2018 will show in which direction the year will go.”
From a regional perspective, Q4 turned out over-proportionally positive for Nordic, Benelux, Iberia, Italy, Eastern Europe, Turkey and Israel, with Germany sitting right on the average. For the full fiscal year, it really was the South and the East that drove the growth in semiconductor distribution. In Q4, of the major regions/countries, Germany grew by 11.7% to 597 Million Euro, Italy by 13.8% to 170 Million Euro, France (+9.8%) achieved 143 Million Euro and overtook the UK (+5.3% to 142 Million Euro). Nordic ended with +20.8% at 184 Million Euro and Eastern Europe with +12.4% at 316 Million Euro.
Georg Steinberger: “The long-term tendency of a production and thus market shift from the West to the East continues. Also Germany’s share of the European DTAM, which has been up to 34% in the past, came down to ~30% now.”
Product-wise, Q4 showed strong performance in Discretes, Power, Sensors, Opto and Memory, while Analog, MOS Micro and Logic in general (Programmable, Standard, Other) seemed to struggle. Analog components grew “only” by 8.5% to 571 Million Euro, MOS Micro by 9.9% to 424 Million Euro (mainly driven by high-end MCUs), Power by 23.9% to 209 Million Euro, Opto by 14.5% to 211 Million Euro, Memories by 18% to 170 Million Euro and Programmable Logic by 1% to 139 Million Euro.
Georg Steinberger: “Interestingly, the strongest product groups in the DTAM historically were also the ones that performed below-average in Q4 and the entire year – Analog, MOS Micro and Logic. Of the biggest single product categories, clearly the stars in 2017 were FETs and High-End MCUs.” “